Location: Huron County, OH | Metro: Erie County, OH HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $870 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,410 | $263,020 | 0.54% | F |
| 4BR | $1,660 | $262,760 | 0.63% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 44826 provides a detailed look at potential investment returns based on Fair Market Rent (FMR) and market rent figures. Using the annualized 2BR FMR of $1,070 for fiscal year 2026 and the market rent figure of $1,265 derived from Census ACS data, we can calculate the gross yields for properties in this area.
First, let's consider the FMR scenario. With an annualized rent of $1,070 per month, the yearly income from a two-bedroom property would be $12,840. Given the median home value of $234,214 in ZIP 44826, the implied gross yield for this scenario is approximately 5.48%. This calculation is straightforward: divide the annual rent by the median home value. The formula is:
Moving on to the market rent scenario, using the $1,265 monthly figure, the yearly income from a two-bedroom property would rise to $15,180. Applying the same median home value, the gross yield increases to about 6.48%. The calculation is similar:
Comparing these two scenarios, it's evident that the market rent scenario offers a higher gross yield. However, the decision between the two depends on several factors including the specifics of the Section 8 program, the demand for subsidized housing, and the overall rental market conditions.
The 21.7% renter density in ZIP 44826 suggests a moderate rental market, neither overwhelmingly dominated by renters nor heavily skewed towards homeowners. This could indicate that there is enough demand for both types of rental units, including those under the Section 8 program. However, the lack of Days on Market (DOM) data means we cannot assess how quickly rental units are typically filled in this area, which is crucial for understanding vacancy rates and the effectiveness of Section 8 vouchers in securing tenants.
In conclusion, while the market rent scenario offers a better gross yield at 6.48%, the FMR scenario still provides a respectable return at 5.48%. Landlords and small-portfolio investors should weigh the benefits of higher yields against the potential challenges of working with the Section 8 program, such as stricter maintenance requirements and slower tenant turnover rates. The final choice should reflect the investor's tolerance for risk and their strategic goals within the ZIP 44826 real estate market.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.